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Budget Support as More Effective Aid?

Budget Support as More Effective Aid?
Author: Stefan Koeberle
Publisher: World Bank Publications
Total Pages: 538
Release: 2006-01-01
Genre: Business & Economics
ISBN: 0821364642

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"Budget support has become an increasingly important instrument in the context of a partnership-based approach to development assistance. Compared to traditional modes of aid delivery, it promises greater country ownership, reduced transaction costs, better donor coordination, scaling up of poverty reduction and potentially greater development effectiveness. This book presents a timely and valuable review of key concepts, issues, experiences and emerging lessons relevant to budget support. It provides an overview of principal characteristics, expectations and concerns related to budget support, key design and implementation issues, as well as some practical experiences. The contributors include government representatives from developing countries, leading academic scholars, bilateral development agencies and development practitioners from international financial institutions, including the World Bank and the International Monetary Fund. They present a wide range of views on key issues such as the choice of instruments, alignment of budget support with country programs, predictability, and coordination and conditionality. The authors draw their insightful analysis on the contemporary research and evaluation work, as well as the broad practical experience with budget support. This book will be of great interest to practitioners in aid-recipient countries and international financial institutions, bilateral agencies and civil organizations involved in budget support."


Providing budget support to developing countries

Providing budget support to developing countries
Author: Great Britain: National Audit Office
Publisher: The Stationery Office
Total Pages: 80
Release: 2008-02-08
Genre: Business & Economics
ISBN: 9780102951325

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Budget support is aid provided directly to a partner government's central exchequer, and aims to reduce poverty through helping to fund the poverty reduction strategy of the beneficiary country. DFID's use of budget support has risen to £461 million, representing nearly twenty per cent of bilateral expenditure. This study examines the aims of budget support, what it is achieving, how DFID manages the risks of using it and how DFID takes individual funding decisions. The report finds that budget support has: often enabled partner governments to increase expenditure on priority areas; resulted in partner governments providing more services, particularly in health and education; helped increase the capacity of partner governments to plan and deliver services effectively and to develop better poverty-focused policies; helped partner governments to strengthen their financial management systems and encouraged other donors to support such reforms; facilitated donor alignment to, and support for, the developing nation's own strategies; and reinforced existing economic stability and good economic management. But evidence on whether budget support has yielded better value for money than other forms of aid is not conclusive. While budget support has some advantages compared to other forms of aid, it also carries significant risks which need to be better managed. Monitoring achievement is challenging, and DFID does not always set out what it expects to achieve or by when. Formal monitoring frameworks do not always track progress in remedying weaknesses in financial systems. And monitoring of human rights - one of the key criteria for giving budget support - is not yet systematic. Weaknesses in available statistics continue to limit the ability to monitor results. Developing country governments may not be capable of using UK funds efficiently and effectively or may misuse them for political reasons or through corruption.


Assessing Aid

Assessing Aid
Author:
Publisher: World Bank Publications
Total Pages: 164
Release: 1998
Genre: Political Science
ISBN: 9780195211238

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Assessing Aid determines that the effectiveness of aid is not decided by the amount received but rather the institutional and policy environment into which it is accepted. It examines how development assistance can be more effective at reducing global poverty and gives five mainrecommendations for making aid more effective: targeting financial aid to poor countries with good policies and strong economic management; providing policy-based aid to demonstrated reformers; using simpler instruments to transfer resources to countries with sound management; focusing projects oncreating and transmitting knowledge and capacity; and rethinking the internal incentives of aid agencies.


Retooling Development Aid in the 21st Century

Retooling Development Aid in the 21st Century
Author: Shahrokh Fardoust
Publisher: Oxford University Press
Total Pages: 305
Release: 2023-04-20
Genre:
ISBN: 0192882198

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Aid instruments need to adjust to new challenges and priorities. Global pandemics, climate change, increased inequality, low economic growth, and conflict have made it increasingly difficult for developing countries to achieve the Sustainable Development Goals. Retooling Development Aid in the 21st Century: The Importance of Budget Support examines the critical role of budget support by both multilateral and bilateral aid agencies to address the 21st century's development goals of eliminating poverty and protecting our global commons. Timely and smartly designed budget support remains a powerful tool to help address the new reality developing countries face, providing fast disbursing finance in support of critical reforms. Set against the background of a dramatically changing international financial architecture, the volume examines how budget support has evolved from its controversial past, addresses the evidence on performance and debates over conditionality, and it reflects on unmet expectations from the 2005 Paris Declaration. With the global financial crisis, the Covid pandemic, and the spillovers from conflict and climate change, budget support re-emerged as a key financing instrument to support policy reforms and catalyze private capital. Drawing on the lessons of the last two decades, the volume proposes a retooling of budget support as a versatile instrument to address both essential global public goods and tackle country-specific development challenges.


Budget Support

Budget Support
Author:
Publisher:
Total Pages: 508
Release: 2006
Genre: Budget
ISBN:

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DAC Guidelines and Reference Series Harmonising Donor Practices for Effective Aid Delivery, Volume 2 Budget Support, Sector Wide Approaches and Capacity Development in Public Financial Management

DAC Guidelines and Reference Series Harmonising Donor Practices for Effective Aid Delivery, Volume 2 Budget Support, Sector Wide Approaches and Capacity Development in Public Financial Management
Author: OECD
Publisher: OECD Publishing
Total Pages: 86
Release: 2006-04-10
Genre:
ISBN: 9264035842

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Following the first volume of good practices for effective aid delivery, this second volume focuses more specifically on good practice in providing budget support and support to sector-wide approaches.


DAC Guidelines and Reference Series Harmonising Donor Practices for Effective Aid Delivery, Volume 2

DAC Guidelines and Reference Series Harmonising Donor Practices for Effective Aid Delivery, Volume 2
Author: Organisation for Economic Co-operation and Development. Development Assistance Committee
Publisher: OECD
Total Pages: 92
Release: 2003
Genre: Business & Economics
ISBN:

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The international community is committed to helping partner countries meet the Millennium Development Goal of halving global poverty by 2015. Effective use of scarce official development assistance is one important contribution to this end. This is why the development community, under the auspices of the OECD Development Assistance Committee (DAC), is dedicated to implementing improvements in aid practices that deliver more effective and harmonised support to the efforts of partner countries. The good practices presented here have been designed to respond to this concern. They represent a set of practical steps that – if applied by development agencies – should significantly improve the effectiveness of development assistance. Following the first volume of good practices published in 2003, this second volume focuses more specifically on good practice in providing budget support (Chapter 2) and support to sector-wide approaches (Chapter 3). In doing so, it acknowledges the special relevance of public financial management issues for both of these modalities of aid delivery. This is why the last chapter of this volume (Chapter 4) is devoted to setting out good practice in providing support to capacity development for public financial management. The chapters are complemented by a substantive annex that outlines a proposed approach to supporting improved public financial management performance. In the same collection: Volume 1: Harmonising Donor Practices for Effective Aid Delivery Volume 2: Harmonising Donor Practices for Effective Aid Delivery: Budget Support, Sector Wide Approaches and Capacity Development in Public Financial Management Volume 3: Harmonising Donor Practices for Effective Aid Delivery: Strengthening Procurement Capacities in Developing Countries The first volume in this collection on Harmonising Donor Practices for Effective Aid Delivery (ISBN 9264199829) was published in May 2003 without a volume number. Its success was such that a short collection of books (of which this is Volume 2) has been created.


Working Together to Make Aid More Effective

Working Together to Make Aid More Effective
Author: Great Britain. Parliament. House of Commons. International Development Committee
Publisher: The Stationery Office
Total Pages: 68
Release: 2008
Genre: Political Science
ISBN: 9780215521873

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Working together to make aid more Effective : Ninth report of session 2007-08, Vol. 1: Report, together with formal Minutes


Problems, Promises, and Paradoxes of Aid

Problems, Promises, and Paradoxes of Aid
Author: J. Oloka-Onyango
Publisher: Cambridge Scholars Publishing
Total Pages: 395
Release: 2014-11-10
Genre: Business & Economics
ISBN: 1443870935

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This book is an anthology of essays contributing new scholarship to the contemporary discourse on the concept of aid. It provides an interdisciplinary investigation of the role of aid in African development, compiling the work of historians, political scientists, legal scholars, and economists to examine where aid has failed and to offer new perspectives on how aid can be made more effective. Questions regarding the effectiveness of aid are addressed here using specific case studies. The question of ownership is examined in the context of two debates: 1) to what extent should aid be designed by the recipient country itself? and 2) should aid focus on “need” or “performance”? That is, should donors direct aid to the poorest countries, regardless of their policies and governance, or should aid “reward” countries for doing the right thing? The future of aid is also addressed: should aid continue to be a part of the development agenda for countries in sub-Saharan Africa? If so, how much and what type of aid is needed, and how it can be made most effective? The major criticism against aid is that it cripples the recipient country’s economic growth by turning it into a passive receiver; in addition, it has been noted that aid is mostly supply-driven, depending upon donors rather than the actual needs of recipients. For this reason, aid may not meet the goals for which it was intended. To meet the needs of the communities they want to help, donors should work through consultation and a measure of recipient ownership. Donors need to understand context, to protect human rights, and to be guided by principles of social and environmental justice. Other suggested strategies for making aid more effective include peer review; self-assessment; the empowerment of women; encouraging accountability; investing in agriculture; helping smallholder subsistence farmers; introducing ethical and professional standards for civil service; and raising the competence of civil servants.